California Home Prices: SoCal Down 27 Percent Year over Year.

The California housing market continues to face severe pressure from distressed properties.  Currently the amount of inventory on the market is near 1 year and prices for the region have fallen a stunning 27 percent on a year over year basis.  Each of the major counties are now down $100,000+ from their bubble peaks.  About one-third of all sales are distressed properties which only adds pressure to the future trend of the market.

“(DQnewsThe median price paid for a Southland home was $370,000 last month, down 3.9 percent from $385,000 in April and down 26.7 percent from the peak median of $505,000 in May 2007. That peak was reached several times in the spring and summer of last year. Last month’s 26.7 percent annual decline in the median is the largest drop in DataQuick’s statistics. The last time the median was lower than May’s $370,000 was in March 2004, when it was $364,000.The median has dropped mainly for two reasons: depreciation, especially in inland markets, and the sharp drop off in the past nine months of home sales financed with jumbo mortgages, previously defined as over $417,000. Before the credit crunch hit in August 2007, making jumbos pricier and harder to obtain, nearly 40 percent of Southland sales were financed with them. Last month jumbos accounted for just 15.8 percent of sales, up from 15.1 percent in April.”

Not good news for a California economy that is facing a major budget shortfall this year.

RSSIf you enjoyed this post click here to subscribe to a complete feed and stay up to date with today’s challenging market!



Subscribe Form

Subscribe to Blog

My Budget 360

Enter your email address to receive updates from My Budget 360:

100% Private & Spam Free.


Subscribe in a reader


Popular – All Time

  • 1. How much does the Average American Make? Breaking Down the U.S. Household Income Numbers.
  • 2. Top 1 Percent Control 42 Percent of Financial Wealth in the U.S. – How Average Americans are Lured into Debt Servitude by Promises of Mega Wealth.
  • 3. Is college worth the money and debt? The cost of college has increased by 11x since 1980 while inflation overall has increased by 3x. Diluting education with for-profits. and saddling millions with debt.
  • 4. The Perfect $46,000 Budget: Learning to Live in California for Under $50,000.
  • 5. Family Budget: How to go Broke on $100,000 a year. Why the Middle Class has a hard time Living in Expensive Urban Areas.
  • 6. Lining up at Midnight at Wal-Mart to buy Food is part of the new Recovery. Banks offering Mattress Interest Rates. The Invisible Recovery Outside of Wall Street.
  • 7. You Cannot Afford a $350,000 Home with a $75,000 Household Income!
  • 8. Crisis of generations – younger Americans moving back home in large numbers. Student loan default rates surging largely due to for-profit college expansion.
  • 9. The next massive debt bubble to crush the economy – 10 charts examining the upcoming implosion of the student loan market. $1 trillion in student loans and defaults sharply increasing.
  • 10. Welcome to the new model of retirement. No retirement. In 1983 over 60 percent of American workers had some kind of defined-benefit plan. Today less than 20 percent have access to a plan and the majority of retired Americans largely rely on Social Security as their de facto retirement plan.
  • Categories